For us Canadians, we have seen our Canadian Dollar collapse. To say it’s fallen slightly is an understatement. It changes the spectrum and our wishlists greatly, let’s not deny that.
Today for example, it will cost us 1.41 CDN to buy 1 US Dollar. For our American friends, think about that. An item at the dollar store would cost us $1.41. It’s significant.
My opinion on this subject dates back to my trucking years. Our dollar was always lower to about 1.25 CDN to 1.00 USD. Our economy was doing good and man there just wasn’t enough truckers to keep the products moving from Canada to the USA. The USA businesses could buy from Canada and have more bang for their buck. Times are good and then it hit us… The CDN dollar started to increase getting closer to being par, which means, the same as the USD and jobs here in Canada were lost. My trucking career was finished. USA businesses stopped ordering products to be made in Canada. It was devastating and job loss was significant.
On the flip side, because of our dollar being at par, we could actually buy far more from the USA for many years. But today, that is not the case.
Over the past year, we have seen our dollar collapse. The joys of ordering online from USA Businesses is no more. For example. A Crochet Cruise T-Shirt made in the USA can be bought for $22 USD but to convert that to CDN it is$39 according to the website we used. $39 for a t-shirt? No thanks. I don’t need it that bad.
On the flip side, with our dollar collapsing, the return of jobs comes but suddenly the online marketing of yarn buying changes the spectrum to making the yarn more expensive to those deal in USD. Canadians crying foul at the businesses for over charging, meanwhile, it’s not the business’ fault. It’s the economy and exchange rate that is dictating that. Yell at the businesses and give them a hard time, they have no power to change the exchange rate.
Unfortunately, in the global scale of online ordering, many people love to leave nasty and ridiculous comments on the USA based sites without a clear understanding that it is bigger than what all of us can control.
As a Canadian business, most of our business is actually conducted with USA companies. Suddenly my website is now 1.41% more than it was before and the list goes on and on. I need very specialized companies to work with and unfortunately do not exist here in Canada. So I am at the mercy at the CDN Exchange Rate. Does it suck? Absolutely. Can I control it? Pahlease, that’s wishful thinking. All my revenue to pay for our team is in CDN dollars but all of my payouts are in USD. It’s a hard pill to swallow and it sucks but what can I do about? Not much… just ride it out and adjust my business where I can.
Many companies, including myself, have been dealing in USD for a very long time. We are at the mercy of the exchange. While I get that many Canadians love to leave nasty comments on the USD based companies for being over priced because of the shift of the dollar, it’s not something that is productive by any means.
I’ve seen many Canadians request the USD based companies service Canadians at par regardless of the exchange rate. I have to roll my eyes when I see these types of comments. As a business owner, if something I sell is $1.00 and someone is insisting I take a CDN Dollar at par, I’m only getting 60 cents. I wouldn’t accept that and I don’t think it’s fair for businesses to be forced to take that on either. They have real costs and most likely the margin of profit is as low as it can be.
There are two things that really bug me online. This may get some bees in a bonnet all fired up.
- People who give businesses a hard time for when contests are run when they exclude countries or areas of the globe. It is what it is? Lottario is an Ontario Canada Lottery. It’s not anywhere else in the world. It is what it is. There are guidelines on things in life. It’s just the way it is, I’ve come to accept it but others insist on kicking up a dust storm.
- When people complain to a company of being unfair due to currency exchange. That’s way beyond the control of the company. Suck it up.
We are in a society today where people feel like they are the victims and need to be outspoken and cause so much trouble over issues that are much bigger than they are. It just doesn’t seem fair because most likely the company is also facing hardship because of the same issue itself. We are all in the boat together. Like it or not, you’re sharing my life boat with me.
So yes, I will admit, my spending in the USA has slowed right down. Frankly, I cannot afford it and I need to resourceful. But on the flip side, with our dollar slipping, it means jobs will return because countries like the USA will turn to companies where they get more bang for their dollar. Why do you think so much is imported in from Asia? The dollar is so low.
So the business side of me says… yeah it sucks. The personable side of me sees my fellow community members that have not had jobs finally have an opportunity to be employed. I’m on the humanitarian side of wishing others around me to have opportunities too. Daniel and I are not rich people, lord knows we work 7 days a week with obscene hours each day. We do what it takes. So I have to adjust our spending and services. Cut where I need to, expand where I can afford to. It’s just life.
That’s my 2 Cents USD… in Canada that would be 3 Cents!